local business

TheINTERVIEW WITH NEAL ROSENTHAL merchant OF MAD ROSE GROUP, ROSENTHAL of WINEShekomeko MERCHANT

By Christine Bates [email protected]

After learning about field-to-glass whiskey in last month’s Main Street interview with Jeff Baker of Hill- rock Estate Distillery, we decided to explore the world of European with Neal Rosenthal, one of the most highly regarded importers of French and Italian wines in the United States. The home of the Mad Rose Group can be found on a Shekomeko hills farm in the Town of North East, NY. Between Irving Farm Cof- fee Roasters, Harney & Sons tea, Hillrock Distillery’s whiskey, and Mad Rose’s Rosenthal Wine Merchant, are we becoming the premium beverage capital of the country?

What does a wine importer do exactly? We search out traditional, family-owned vineyards in Europe, purchase cases of wine directly from the vineyard for importing to the United States, Above: Rosenthal exploring new territory in Calabria, this autumn. Photo courtesy of Neal Rosenthal. Below: The back label on every bottle of wine that Rosenthal imports hasn’t changed in 35 years. These two bottles rep- arrange and pay for shipping to the US, pay all resent the lowest and highest prices for Rosenthal wines currently in stock at Salisbury Wines in Salisbury, CT. The the customs duties, and transport and store the Côtes du Rhône is $15.00 while the 2012 Chambolle Musigne is $156.00. Only 200 to 300 cases of Chambolle Mu- signe are imported to the United States in any given year and Salisbury Wines was fortunate to secure six bottles. wine in our warehouse in Queens. Rosenthal Wine Photo by Christine Bates. Merchant sells our wine directly to retail wine stores and restaurants in New York, Connecticut, are not fruity; they evoke the soil, the climate, and over the liquor store from my parents. My idea was New Jersey, and Southern , and through the history of where the grapes are grown. In a way to buy them out and, in a few years, write the great distributors in the rest of the country. Our wines it is farm to table. You know who produces the American novel. The store was so small that it had are available in 42 states. We just haven’t found the wine and how, and exactly where it comes from. no bathroom. Gradually I began talking to the wine right distributor in the states where we don’t sell, distributors that came into the store and started to like North Dakota and Alaska. Wine reviewers often use words like ‘hints learn about wine. My grandparents had emigrated of strawberry with chocolate undertones.’ from Eastern Europe and wine had never been part You are known for selecting very specific Does that make sense to you? of our family’s culture. types of wine. How do you describe your That is such bullshit. And assigning wines numeri- The owner of the apartment building across taste? cal scores. And those annoying shelf talkers in wine the street in this very wealthy part of Manhattan First of all I only select wine that I like. I don’t stores – those little tags sticking out with a number suggested that I take over two retail spaces on the buy wine because I think it will sell. I am drawn and a few words. Wine evokes something different ground floor and move the store to a larger space. I to wines that embody the “terroir” of the place in everyone. decided to make it an all wine store and invested all where the grapes are grown. These wines have had of my money in fixing it up. My father helped per- geographical and cultural connections for hundreds You started out as an international tax suade Chemical Bank to lend me $25,000 to make of years and are produced by families who grow attorney, how did you end up in the wine business? lease hold improvements. We were a curiosity at their own grapes and make their own wine. Wines the time – the only liquor store that sold only wine. imported by Mad Rose’s Rosenthal Wine Merchant My father owned an old-fashioned pharmacy on Lexington Avenue in New York City. It was open Customers came in to visit my French poodle. every day from 6 o’clock in the morning until 9 at It was a very tough time for me. Paying off the night. In those days pharmacies usually had lunch loan, paying the rent, paying alimony. Remember counters. That’s a tradition that goes back to the that my loan was at Prime plus 2% and prime nineteenth century when Coca Cola and other went up to 23.5%. I had nothing and I lived like concentrates were prescribed by the pharmacist a Bohemian. and mixed with seltzer. Eventually my father sold When did you start sourcing your own wine the pharmacy, but retained the lunch counter in the directly? back and turned it into a very small liquor store, My first exploratory trip was to California in 1979. very small. I located some excellent sources and started selling Despite being on law review at Columbia, I nev- these wines in New York. Early the next year I went er really enjoyed being an attorney. There’s a trap to Italy and that was really the beginning. in doing something well that you don’t like. One day in 1977 after being a lawyer for seven years I Continued on next page … just stopped. I got divorced from my high school girlfriend, moved to a small apartment and took MAIN STREET MAGAZINE 11 local business

Left: Salis- bury Wines carries 30 wine selec- tions from Rosenthal Wine Mer- chant. The Sancerre on How did you know what to do? the far left is the most Where to go? popular. I guess I just had a knack for finding the right Photo by Christine people and confidence in my taste. I only buy for Bates. people who share my taste. I learned Italian and improved my college French. Language is the front door of any culture. You must speak the language. I am not a negotiator. I just ask the price. And I don’t have any written contracts with any of my produc- ers. It’s all a handshake. In my view it’s not the best policy, it’s the only policy. We actually created a market for some of our early producers who had never bottled and sold wine under their own label. We put them in business.

How many vineyards do you work with? Where are they located? We work with over 100 producers. 60% are from and about 35% from Italy. The remaining 5% is sourced in Spain and Switzerland.

Do customers in wine stores ask for a Rosenthal wine? Absolutely. We are the brand on the back of the we have another five people handling administra- being updated and we are constantly revising and bottle. Our label hasn’t changed in 35 years. tive tasks. Our employees stay with us because we improving our site. In the next year or so we will be respect them, and some of them have made a good adding more videos and educational material. How much do your wines cost in a retail deal of money working here. store? What are your passions? First of all price is not an indicator of value. You Where did the name Mad Rose come from? My passions are writing, running, piano, dogs, life. could find our lowest priced wine for $12 and our The Mad Rose Group is a combination of the first I don’t consider my business work. highest at $400 a bottle. For me $400 is way too syllables of Rosenthal, my last name, and my busi- precious. Most of our wines sell between $25 to ness and life partner’s last name, Kerry Madigan. What is most difficult about your business $40 a bottle. Kerry does all the work and I’m the front man of and most satisfying? our business. My mother and father always worked The difficult part is that it takes hold of you and What are the trends in the wine together, maybe there’s a theme here. won’t let go. It’s really not glamorous and it’s physi- importing industry? cally challenging to be on the road for an eleven- There are two distinct trends happening at the And what personal traits have contributed day foreign trip, visiting four or five producers a same time. There’s growing commercialization of to your success? day and working 18 hours every day. For me the wine brands with an emphasis on advertising and Discipline. I learned discipline from cross-country most rewarding part is affecting the lives of so marketing, and simultaneously a parallel track of running. It extends to everything you do from law many people that are linked to the business. higher quality and greater sophistication. school to business. What other wine areas are interesting to What has been the key to the success of What advice would you have to a starting you? Where’s your favorite place to drink Rosenthal Wine Merchants? entrepreneur? wine? Not only do we have the best wines, we also have You have to really love what you are doing, believe Greece and Germany have potential, but forget the best service. We have total control over our in yourself, be prepared to sacrifice, and work like about China and . My preference is to product because we have our own warehouse, a dog. You have to be doing the right thing and drink wine at home. The contents of 750 milliliter unlike most importers who rent space in someone doing it well. wine bottle demand to be shared – it’s too much for else’s warehouse. If a restaurant in New York runs one person to drink. out of wine, we can restock the next day. If Harvard Did the downturn during the financial Business School studied our business they would crisis hurt your business? What’s the next step for you? say we have way too much inventory. But our in- Our business was down 12% to 15% for nine A few years ago we interviewed some investment ventory guarantees availability to all of our clients. months when the crisis hit, but we didn’t panic. bankers and they recommended selling the com- And of course, just like Hillrock, our inventory Since 2010 we have had double-digit growth every pany. But why would I want to do that? • continues to increase in value. year. Downturns are actually a great time to start a Our excellent service is due to our personnel. We business. To learn more about Neal Rosenthal and the wine busi- have incredible people working with us. We have ness acquire a copy of Neal Rosenthal’s “Reflections of a eight sales people who cover the country. Some How important is the Internet to your Wine Merchant,” on a lifetime in the vineyards and cellars of France and Italy. Published in 2008 by Farrar, Straus of them have been with us for 25 years. We have business? and Giroux. To learn more about wine marketing, Napa another 12 people in our warehouse operation, 11 The Internet made it possible for us to conduct our business here in the country. We moved up here 21 and “terroir” watch the 2005 documentary “” of whom are Haitians. Wonderful people! Then that includes Neal Rosenthal, , and Robert years ago. Our website www.madrose.com is always Parker.

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